prepare a statement of cash flows for the year ended december 31 2014 using the indi 621071
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below.
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ROTHLISBERGER COMPANY Comparative Balance Sheets December 31 |
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|
Assets |
2014 |
2013 |
|
Cash |
$ 81,000 |
$ 45,000 |
|
Accounts receivable |
41,000 |
62,000 |
|
Inventory |
151,450 |
142,000 |
|
Prepaid expenses |
15,280 |
21,000 |
|
Land |
105,000 |
130,000 |
|
Buildings |
200,000 |
200,000 |
|
Accumulated depreciation—buildings |
(60,000) |
(40,000) |
|
Equipment |
221,000 |
155,000 |
|
Accumulated depreciation—equipment |
(45,000) |
(35,000) |
|
Total |
$709,730 |
$680,000 |
|
Liabilities and Stockholders” Equity |
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|
Accounts payable |
$ 47,730 |
$ 40,000 |
|
Bonds payable |
260,000 |
300,000 |
|
Common stock, $1 par |
200,000 |
160,000 |
|
Retained earnings |
202,000 |
180,000 |
|
Total |
$709,730 |
$680,000 |
Additional information:
- Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $5,720.
- Land was sold for cash at book value.
- Cash dividends of $20,000 were paid.
- Net income for 2014 was $42,000.
- Equipment was purchased for $88,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $6,000 cash.
- Bonds were converted at face value by issuing 40,000 shares of $1 par value common stock.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.